By Matt Ferrell, Coldwell Banker Select, Special to the Progress
September 2, 2009 — As we’re bombarded with the daily ups and downs of the national market it’s hard to see where Rogers County fits in the picture.
The most frequent question every Realtor hears is “How's the market?”, and every Realtor will give the answer based on their personal business.
This is because every state, county, city, and even street may have its own unique market.
Without a true Market Analysis of a certain property, we cannot tell how the market has affected you or your property.
That said, I’ve looked at the numbers for Rogers County and will attempt to answer the question — “How's the market in our county.”
Overall, the Real Estate Market is a ”Buyers Market”, a supply and demand term meaning more homes than buyers giving every buyer more choices and seller more competition.
Current market trends are called a “Sloppy Bottom,” meaning we are experiencing market fluctuations from month to month.
As the economy improves, this trend will slowly have more gains than losses eventually leading to a gradual upturn in the market.
Rogers County remain somewhat sheltered from the major problems of the coastal regions, allowing us to climb out of the hole quicker.
However, we are not immune to the economic fallout.
In analyzing the market, I looked at factors from our MLS (multiple listing service): YTD Average Price, Absorption Rate, and Number of Homes Sold compared to last year's numbers.
Firstly, the average year to date price for homes sold has gone down about 8.4 percent. This doesn’t mean your house is worth 8 percent less, it just means the average has gone down.
Second, the number of homes sold is down with the biggest impact on the higher priced homes.
This is a huge factor that alters “Average Price.” If less high-end homes are selling it brings down the overall average price.
Lastly, the “Absorption Rate,” the amount of inventory on hand.
If we stop listing homes today, the absorption rate shows how long on average it would take to sell what is currently on the market.
According to the numbers from MLS, the Total Market has 8.94 months of inventory at the current sales rate. Homes Under $250,000 have 7.62 months of inventory at the current sales rate. Homes over $250,000 have 32.58 months of inventory at the current sales rate. So on average, homes under the $250,000 mark are going to take about seven months to sell. High-end homes could take more than two years to sell.
What does this mean to you? The Market, year to date, is down, however, we a doing much better than the rest of the country.
Average home values are down, but those under $250,000 are stable and selling relatively quickly. The largest affected group those homes over $250,000, taking longer to sell and the number of sales is down by 43 percent compared to last year.
If thinking of selling your home, make sure you find a REALTOR with the tools, skills, and knowledge to help you maneuver through the market. If you are looking to buy, there are willing lenders, many homes, and assistance programs still in affect to make home ownership possible.
So how’s the market? It’s down, but not out. Homes will continue to sell, people will continue to reach for the American Dream, and the economy will recover.
